Union of India & Ors. v. Rakesh Kumar & Ors.
Background
The respondents were originally engaged as casual labourers in the Northern Railway, later granted "temporary status," and still later regularised against permanent posts. They claimed that their service during the temporary-status period (and in some cases even the earlier casual period) should count as qualifying service for pension, specifically, 50% credit for casual service and full credit from the date of temporary status, relying on an earlier Tribunal ruling in a similar case. The Central Administrative Tribunal and the Delhi High Court both ruled in the employees' favour, prompting the Union of India and Railway authorities to appeal to the Supreme Court in this batch of near-identical cases.
Decision Breakdown
The Supreme Court examined the applicable pension rules (including Rule 20 and Rule 107 of the relevant 1993 Rules) and distinguished the precedents cited by the railway employees as resting on different statutory schemes. It laid down specific findings: a casual worker who has obtained temporary status can count 50% of his service towards pension until regularisation; a casual worker is also entitled to 50% credit even for service before obtaining temporary status; workers appointed substantively, officiating, or in a temporary capacity to a post are entitled to count the full period from taking charge; and the Pension Sanctioning Authority may recommend relaxation of rule requirements to the Railway Board in deserving cases. Based on these holdings, all the appeals were allowed, the High Court and Tribunal judgments were set aside, and the original applications were disposed of strictly in terms of these findings.
Lesson Learnt
Pension credit for casual or temporary government service is governed strictly by the specific service rules in force, not by general equity: employees should check exactly how much (and from which date) their pre-regularisation service counts under the applicable pension rules rather than assuming full credit.